Bloomberg Tech — Big Tech Selloff May Signal Turning Point

Date: March 30, 2026
Hosts: Caroline Hyde, Ed Ludlow
Episode Theme:
A detailed exploration of the recent selloff in Big Tech and its significance for markets, the impact of ongoing geopolitical tensions (the Iran war) on markets and inflation, and a look at the future of space technology with the looming SpaceX IPO and NASA’s Artemis lunar mission.

Episode Overview

This episode analyzes the sharp correction in the tech sector, explores macroeconomic perspectives following recent Fed and government commentary, and pivots to the business and innovation of space — featuring expert interviews on both market strategy and the investment case for SpaceX.

Federal Reserve & Inflation Outlook

Segment Start: 01:27
Guests: Mike McKee (Bloomberg International Economics & Policy Correspondent)
Key Points:

• Powell’s Dilemma:
  • Fed Chair Jay Powell reiterated at Harvard that the central bank is fundamentally hampered by supply shocks — especially in oil.
  • Powell’s comments led to a moderate rally in stocks and a drop in yields.
• Main Takeaway:
  • “If there is a takeaway, it would be that the Fed doesn't know what's going to happen because it does have this supply shock that's going to weigh on the inflation rate...the Fed is...well positioned to sit and wait for a while.” — Mike McKee [02:38]
  • Both inflation and growth risks are present; the Fed may not act quickly, preferring to ‘jawbone’ expectations rather than move rates prematurely.
• Impact of Iran Conflict:
  • Persistent supply disruptions, especially in oil, are a key concern—but Fed action is limited unless inflation leaches into the broader economy.

Iran Conflict: Geopolitical Uncertainty & Market Effects

Segment Start: 05:06
Guest: Kelly Lyons (Bloomberg Balance of Power co-host)

• Diplomatic Status:
  • Ongoing war in Iran, now entering its second month, with mounting risks of U.S. escalation.
  • “Whatever talks are happening are through intermediaries...President Trump seems to be playing both of those roles [good cop, bad cop]...he is citing good progress but also threatening Iranian infrastructure.” — Kelly Lyons [05:42]
• Rising Escalation:
  • U.S. troop deployments increasing nearby; threats of targeting Iran’s oil and water infrastructure if the Strait of Hormuz is not reopened.
  • Houthi attacks on Israel and Red Sea shipping raise further economic disruptions.
• Bottom Line:
  • “It doesn't seem like we are necessarily getting any closer to concrete resolution here.” — Kelly Lyons [07:59]

Tech Sector Selloff: Turning Point or Bear Trap?

Segment Start: 07:59 Guest: Denise Chisholm (Fidelity, Director of Quantitative Market Strategy)

Is This a Buying Opportunity for Tech?

• Current Setup:
  • Valuations in Big Tech are at their lowest in over a decade, with many names in the bottom third of historic price ranges.
  • “There is a very linear relationship between the cheaper the sector has been historically, the more likely it is to outperform. 70% odds are not 100% odds, but...it does look more like an opportunity.” — Denise Chisholm [08:34]
• Valuation Trap or Not?
  • Despite falling prices, operating profits in sectors like software remain at record highs.
  • “You have this massive disconnect between the valuation in the operating profit that is rare historically...software is going through its own great financial crisis pricing.” — Denise Chisholm [10:02]
• What History Suggests:
  • Rare as this setup is, historical precedent signals limited further downside; the odds of outperformance for software from this level are about 50/50 — not a clear buying signal, but a base for recovery.
  • Semiconductors and comm equipment have historically rebounded more strongly from such oversold conditions.
• On the “AI Apocalypse” and Cyclical Risks:
  • Chisholm acknowledges structural change from AI but cautions against discarding historical market patterns altogether:
    • “It is always different this time...and yet the patterns are very sticky...the more you see that fear and that knee jerk reaction, the more likely the market is to be higher...over any long term time horizon.” [12:38]

Oil Prices & Tech

• Energy Price Impact:
  • Current oil price spikes are less threatening to corporate profits and tech than in previous decades due to reduced oil dependence of the tech sector and the broader economy.
  • “The comparisons to the 70s and 80s of stagflation, this is a very different economy and it might be much more absorbable than you think, which might mean…more of that [risk] is priced in than you may think.” — Denise Chisholm [15:37]

Space Investment: NASA's Artemis & SpaceX IPO

NASALunar Mission Segment Start: 17:35
SpaceX IPO Segment Start: 20:19

NASA’s Return to the Moon

Guest: Lauren Grush (Bloomberg, at Kennedy Space Center)

• Modern Motivations:
  • Renewed US lunar exploration is framed in both competitive terms (potential Chinese advances) and scientific/economic ambitions (future lunar/Mars economy).
  • “There’s this idea of jumpstarting a lunar economy…learning how to live off another planetary body…lessons can then be applied to Mars living someday.” — Lauren Grush [18:27]
• Partnership Model:
  • Artemis program blends “old and new”—major NASA contractors alongside private firms like SpaceX and Blue Origin.
  • Test of partnership effectiveness and new business models in space exploration.

SpaceX IPO: The Investment Case

Guest: Joseph Alagna (Buttonwood Funds)

• Valuation and Growth:
  • Anticipated $1.75 trillion IPO, supercharged by the acquisition of chipmaker Terrafab, which will reduce dependence on Nvidia and establish a tighter ecosystem for AI and space tech.
  • “He (Elon Musk) really has the total ecosystem now with Terrafab. He no longer is going to be dependent on chips from Nvidia...It’s the same playbook that I think he’s doing right now...building a significant infrastructure play in space and artificial intelligence like no one's ever seen.” — Joseph Alagna [21:50]
• What Are You Buying?
  • Alagna sees SpaceX as an “infrastructure moat” company incorporating AI, telecom, and launch capabilities.
  • “I always say it’s Elon because there really is no one else out there quite like him…He’s got a moat now…makes it very difficult for any other company to really, truly be a competitor.” — Joseph Alagna [22:45]
• Buttonwood Fund’s Public Offering:
  • One of the first public vehicles with meaningful stakes in pre-IPO giants like SpaceX and Anthropic.
• Anthropic vs. Xi:
  • Anthropic (AI safety company) seen as an enterprise leader, valued for its “constitutional AI” guardrails, distinguishing it from other AI startups focused solely on scale.

Notable Quotes & Moments

• Fed on Supply Shocks:
  • “The Fed’s tools have no meaningful effect on supply shocks.” — host, summarizing Jay Powell [03:30]
• Kelly Lyons on Iran diplomacy:
  • “It’s a bit of a he said, she said situation...President Trump seems to be playing both of those roles [good cop, bad cop].” [05:42]
• Denise Chisholm on Tech Valuations:
  • “We haven’t really been this cheap from a valuation perspective in over 10 years.” [08:34]
• Lauren Grush on Artemis:
  • “It is kind of a mashup of the old and the new…can these different contracting mechanisms actually work together to put people back on the surface of the moon?” [19:38]
• Joseph Alagna on SpaceX as an ecosystem moat:
  • “He’s got a moat now that…makes it very difficult for any other company to really, truly be a competitor.” [22:45]

Timestamps for Important Segments

• Fed & Supply Shocks / Powell’s comments: 01:27–05:06
• Iran War Geopolitics / Market Uncertainty: 05:06–07:59
• Tech Selloff as Turning Point (Chisholm): 07:59–15:37
• NASA Artemis / US–China Space Race: 17:35–20:19
• SpaceX IPO / Funding Dynamics: 20:19–26:05

Summary Takeaways

• The Big Tech correction may represent a historic buying opportunity, with fundamentals diverging sharply from compressed valuations. Yet, uncertainty remains due to AI’s unpredictable impact and macro shocks.
• The Iran conflict continues to roil energy markets and risk calculations, with Fed officials hesitant to act on inflation rooted in supply disruptions.
• Space remains a critical area of innovation and investment: Artemis will be a litmus test for public–private collaboration, and SpaceX’s anticipated IPO could reshape the space and tech investment landscape.
• Throughout, the show urges caution and historical perspective, noting that what seems unprecedented is often echoed in previous market cycles—though each era brings its own disruptions.

For more information and reporting, visit Bloomberg.com and tune into further Bloomberg Tech episodes.